Protected Cell Company
What Does Protected Cell Company Mean?
A protected cell company (PCC) is a corporate structure that comprises a core company and its cells. Each cell operates as a separate business unit with its own assets and liabilities.
While all cells are part of the same company, one cell cannot utilize the resources of another without the approval of those managing that cell. Additionally, legal action taken against one cell does not affect the others.
This structure is also referred to as a segregated portfolio company (SPC).
Insuranceopedia Explains Protected Cell Company
Separating the financial assets of each cell protects them from the misfortunes or wrongful actions of others. For instance, a cell cannot simply access the funds of another cell to cover its liabilities. This fiscal independence can also relieve the core company of certain financial and legal burdens.
PCCs can only operate in jurisdictions that legally recognize this specific structure.
